APPD Market Report Article

Beijing

February 28, 2022

44.3%

RMB 483

RevPAR
Stable

Growing demand remains sensitive to epidemic outbreaks

  • According to the Beijing Municipal Bureau of Culture and Tourism, Beijing welcomed 8.6 million tourists during the National Day holiday, 93.5% of that which came during the same period in 2019. The city recorded a total tourism revenue of RMB 10.8 billion, representing an increase of 15.0% over the previous year and 96.8% of that from the 2019 level.
  • Since the end of October, Beijing and several other cities across the country have witnessed surges in new COVID-19 cases, forcing the government to reinforce the control policies. These strict measures have greatly affected the travel and hospitality sector in the last quarter of the year.

New supply is limited on the back of tight measures

  • There were 276 new rooms added to Beijing’s existing supply with the opening of DoubleTree by Hilton Beijing Badaling in the last quarter of the year.
  • The Beijing hotel landscape will be marked by the opening of one upscale hotel. The upcoming Sheraton Beijing Huairou Hotel will add 272 keys to the market in February 2022.

Control policies put downward pressure on hotel performance

  • As of YTD December 2021, the average daily rate (ADR) and occupancy stood at RMB 971 and 49.8%, respectively. As a result, revenue per available room (RevPAR) was RMB 483, increased by 44.3% from the same period in 2020, representing 57.8% of the 2019 level.
  • While in October occupancy recovered more than 70% relative to 2019, surges in new cases in November led to a drop of 28.3% of the occupancy rate and a decrease of 55% of the RevPAR to RMB 277. The impact of the pandemic has been more severe for Beijing hotels due to stricter control policies in comparison to other major cities of Mainland China.

Outlook: Easing controls after April is expected to boost performance

  • Following the Winter Olympics and two other main events in 2022 (the National People’s Congress and the Chinese People’s Political Consultative Conference), Beijing’s entry policy is expected to be relaxed gradually.
  • The overall performance of Beijing upscale hotels is expected to maintain a good recovery trend, along with increasing vaccination rates and the outreach of Universal Beijing Resort.

Note: Beijing Hotels refers to Beijing's upscale hotel market.

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